McLean, Va. – September 7, 2022 – Booz Allen Hamilton Holding Corporation (NYSE: BAH) today announced that on September 7, 2022, its wholly owned subsidiary, Booz Allen Hamilton Inc. (the “Company”), successfully closed the ninth amendment to its credit agreement, dated as of July 31, 2012. Key updates for the refinancing include, but are not limited to, raising $2,650 million under the Senior Secured Credit Facilities, reducing overall interest costs by transitioning Term Loan B (“TLB”) balances into the Term Loan A (“TLA”) market, extending maturities under the Company’s Revolving Credit Facility (“Revolver”) and TLA for a new five-year term, and converting to a SOFR-based loan. Under the credit agreement, as amended, the Company's Revolver and TLA mature on September 7, 2027, and the Company’s TLB will be extinguished.
In connection with the amendment, an additional approximately $425 million of the Company's TLA was borrowed with a portion of the proceeds used to prepay all of the outstanding TLB. The credit agreement, as amended, consists of a $1,000 million Revolver and $1,650 million TLA. Following the amendment, the interest rate for the outstanding indebtedness of approximately $1,650 million under the TLA is SOFR + 1.25%, plus a 10 basis points Credit Spread Adjustment as the Company transitions from a LIBOR-based agreement to SOFR-based (subject to adjustment based on the lower of (i) the applicable rate per annum determined pursuant to a leveraged based pricing grid and (ii) the applicable rate per annum determined pursuant to a ratings based pricing grid) with no SOFR floor.
The Company also amended the TLA amortization schedule from 5% per annum to 2.5% per annum prior to the two-year anniversary of the amendment closing date and 5% per annum thereafter. Certain other covenants and terms under the credit agreement were amended to provide for greater operational and financial flexibility to the Company.
Further information can be found in Booz Allen Hamilton Holding Corporation’s Current Report on Form 8-K filed with the Securities and Exchange Commission on September 7, 2022.
